German Government Sells 700 BTC, Halts Bitcoins Rebound

• Bitcoin halted its recent rebound amid the continued German government’s selloff.
• The German government transferred 700 BTC to an unidentified address on Sunday.
• BTC has reclaimed significant support at $56,500.

Bitcoin halted a potential rebound in the early hours of Thursday as onchain trackers spotted another significant BTC transfer by the German government. Data from Arkham Intelligence shows the government‌ transferred 700 BTC, or roughly $40.55 million, to the unmarked address 139PoP…H7ybVu in the early hours of Sunday.

Crypto users suspect the address might belong to an OTC service or an institution. The latest transfer joins the list of significant daily BTC transfers by the German government since last week. Crypto trackers have linked most of the previous transfers to centralized exchanges, coinciding with the recent crypto crash that saw the flagship crypto experience its most significant pullback since the last Bitcoin halving.

Meanwhile, Bitcoin staged a remarked comeback after last Friday’s price drop, with the pioneer crypto forming a classic downtrend rejection candle on the daily chart, according to data from TradingView .

Bitcoin reversed the selling pressure after dropping to $53,550 on Friday and reclaiming nearly all the losses incurred before the trading day closed. The rebound continues on Saturday, with Bitcoin surging to a $58,488 high, suggesting a return of the bulls into the Bitcoin market. However, Bitcoin made a slight pullback and closed at $58,251.

The battle between the bulls and the bears continued on Sunday with an early signal of a resumption of the bearish pressure. Bitcoin is down 1.69% on the daily chart as of the time of writing. However, the recent rebound moved the price above significant resistance at $56,500, turning it into a support. 

Notably, trading about the $56,500 level maintains a bullish sentiment for Bitcoin, with long-term holders considering the recent pullback as an opportunity to accumulate more BTC and expand their portfolios. Bitcoin traded for $57,783 at the time of writing.